9 unchanged sentences
Our Dutch entities hold significant amounts of U.S.
−Removed: dollars in cash and cash equivalents, have debt and interest obligations to Hercules denominated in U.S.
+Added: dollars in cash and cash equivalents and investment securities, have debt and interest obligations to Hercules denominated in U.S.
dollars, generate collaboration revenue denominated in U.S.
5 unchanged sentences
On December 31, 2022, if the euro had weakened 10% against the U.S.
−Removed: dollar with all other variables held constant, pre-tax earnings for the year would have been $42.2 million higher (December 31, 2020:
−Removed: $13.0 million higher), and other comprehensive income or loss would have been $23.5 million higher (December 31, 2020:
+Added: dollar with all other variables held constant, pre-tax loss for the year would have been $20.4 million lower (December 31, 2021:
+Added: pre-tax income $42.2 million higher), and other comprehensive income or loss would have been $24.4 million higher (December 31, 2021:
$23.5 million higher).
Conversely, if the euro had strengthened 10% against the U.S.
−Removed: dollar with all other variables held constant, pre-tax earnings for the year would have been $42.2 million lower (December 31, 2020:
−Removed: $13.0 million lower), and other comprehensive income or loss would have been $31.6 million lower (December 31, 2020:
+Added: dollar with all other variables held constant, pre-tax loss for the year would have been $20.4 million higher (December 31, 2021:
+Added: pre-tax income $42.2 million lower), and other comprehensive income or loss would have been $32.1 million lower (December 31, 2021:
$31.6 million lower).
−Removed: We strive to mitigate foreign exchange risk through holding sufficient funds in euro and dollars to finance budgeted cash flows for the next year.
+Added: We strive to mitigate foreign exchange risk through holding sufficient funds in euro and dollars to finance budgeted cash flows for generally 18 months.
The sensitivity in other comprehensive income to fluctuations in exchange rates primarily relates to the translation of the net assets of our Dutch entities from their functional currency euro into our reporting currency U.S.
5 unchanged sentences
Interest rate risk
−Removed: Our interest rate risk arises from short- and long-term debt.
+Added: Our interest rate risk arises from short- and long-term debt and investment securities.
In June 2013, we entered into the Hercules Agreement, which was last amended and restated in December 2021, under which our borrowings bear interest at a variable rate with a fixed floor.
1 unchanged sentence
As of December 31, 2022, the loan bore an interest rate of 12.2%.
−Removed: As of December 31, 2021, if interest rates on borrowings had been 1.0% higher with all other variables held constant, pre-tax earnings for the year would have been $0.7 million (2020:
−Removed: $0.3 million;
+Added: As of December 31, 2022, if interest rates on borrowings had been 1.0% higher with all other variables held constant, pre-tax earnings for the year would have been $1.0 million lower (2021:
$0.7 million lower;
+Added: $0.3 million lower.)
+Added: We invest in government debt in accordance with our investment policy.
+Added: We are exposed to interest rate risk as market interest rates could differ from the interest rates that we fix at the time of acquiring these investment securities.
+Added: As we intend to hold these to maturity, we do not recognize changes in the fair value of our investment which are caused by changes in market interest rates.
+Added: This means that a change in prevailing interest rates may cause the fair value of the investment to fluctuate.
+Added: For example, if we hold a security that was issued at a fixed interest rate at the then-prevailing rate and the prevailing interest rate later rises, the fair value of our investment will probably decline.
+Added: The average duration of all of our investment securities held as of December 31, 2022, was less than 14 months.
+Added: Due to the relatively short-term nature of these financial instruments and our ability and intention to hold these investments to maturity, we believe there is no material exposure to interest rate risk.
Credit risk is managed on a consolidated basis.
1 unchanged sentence
We currently have no wholesale debtors other than BMS and CSL Behring.
−Removed: We deposited funds as security to our landlords related to our facility in Lexington, Massachusetts, and our facility in Amsterdam.
+Added: We deposited funds as security to our landlord related to our facility in Amsterdam.
We also deposited funds to the provider of our U.S.
3 unchanged sentences
Restricted cash includes deposits made in relation to facility leases.
−Removed: Cash, cash equivalents and restricted cash were placed at the following banks:
−Removed: As of December 31,
−Removed: Credit rating
−Removed: Credit rating
−Removed: (in thousands)
−Removed: Bank of America
−Removed: Credit Suisse
−Removed: Ratings are by Moody’s.
+Added: We also have short- and long-term investment securities in U.S.
+Added: and European government bonds maturing within three to 14 months.
+Added: Our investment policy requires us to invest with counterparties with the highest investment credit rating.
+Added: Due to the high credit quality of our counterparties, we believe there is no material exposure to credit risk in our portfolio of investment securities.
Liquidity Risk
−Removed: We believe our cash and cash equivalents as of December 31, 2021 will fund our operations into the first half of 2025 assuming achievement of $230.0 million related to BLA and MAA submissions as well as first commercial sales milestones under the CSL Behring Agreement.
−Removed: We manage liquidity through a rolling forecast of our liquidity reserve based on expected cash flows and raise cash if needed, either through the issuance of shares or credit facilities.
+Added: We believe that our cash and cash equivalents and investment securities will fund our operations into 2025 assuming the achievement of $100.0 million of first commercial sale milestone in the U.S.
+Added: and into the first half of 2025 if the $75.0 million first commercial sale milestone in any of the five contractually defined European countries would be achieved prior to July 2, 2023 under the CSL Behring Agreement.
The table below analyzes our financial liabilities in relevant maturity groupings based on the length of time until the contractual maturity date, as of the balance sheet date.
5 unchanged sentences
Accounts payable, accrued expenses and other current liabilities
−Removed: Derivative financial instrument
−Removed: Commitments related to Corlieve acquisition (nominal amounts)
+Added: Commitments related to Corlieve acquisition (maximum nominal amounts)
At December 31, 2021
2 unchanged sentences
Derivative financial instruments
−Removed: We previously had BMS warrants under the BMS CLA which we derecognized on December 1, 2020 when these were terminated by the amended BMS CLA.
−Removed: On December 1, 2020 we recognized a derivative financial liability related to the CoC-payment.
−Removed: Generally, the CoC-payment would be due to BMS upon the consummation of a change in control transaction prior to November 30, 2026 or BMS’s delivery of cessation notices for all four active Collaboration Targets.
−Removed: The derivative financial liability therefore has no contractual maturity date.
+Added: Commitments related to Corlieve acquisition (maximum nominal amounts)
+Added: During the year ended December 31, 2021, we recorded an amount for the derivative financial liability related to the CoC-payment under the amended BMS CLA.
+Added: Generally, the CoC-payment would have been due to BMS upon the consummation of a change in control transaction prior to November 30, 2026 or BMS’s delivery of cessation notices for all four active Collaboration Targets.
+Added: The derivative financial liability therefore had no contractual maturity date for the year ended December 31, 2021.
+Added: We released the derivative financial liability during the year ended December 31, 2022 as a result of the termination of the amended BMS CLA as of February 22, 2023.
In relation to the Corlieve Transaction, we entered into commitments to make payments to the former shareholders upon the achievement of certain contractual milestones.
The commitments include payments related to post-acquisition services that we agreed to as part of the SPA.
−Removed: The timing of achieving these milestones, as well as whether the milestone will be achieved at all, and consequently the timing of payments is generally uncertain with the exception of a payment we owe upon acquiring the remaining outstanding shares as well as certain payments for post-acquisition services in 2022.
+Added: The timing of achieving these milestones, as well as whether the milestone will be achieved at all, and consequently the timing of payments is generally uncertain with the exception of payments we owed upon acquiring the remaining outstanding shares as well as certain payments for post-acquisition services made in 2022.
We expect these obligations will become payable between 2023 and 2031.
4 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.